For operations, the most relevant global profitability measures are:
A) Profit margin and return on assets
B) Inventory turns and utilization
C) Utilization and efficiency
D) Return on equity and economic value added

Question

Quizplus · Accepted Answer

Profit margin and return on assets are the most relevant global profitability measures for operations because they directly reflect the efficiency and effectiveness with which a company uses its resources to generate profit. Profit margin measures the percentage of revenue that turns into profit, while return on assets shows how well a company uses its assets to generate earnings.

For Operations, the Most Relevant Global Profitability Measures Are